Taiga (TBL) Announces Second Quarter Results Impacted by Falling Commodity Prices

Taiga Building Products Ltd. (“Taiga” or the “Company”) reported its financial results for the three and six months ended June 30, 2022.

Second Quarter Ended June 30, 2022 Earnings Results

Sales for the quarter ended June 30, 2022 were $646.1 million compared to $786.7 million over the same period last year. The decrease in sales by $140.6 million or 18% was largely due to decreased selling prices for commodity products.

Gross margin for the quarter ended June 30, 2022 decreased to $69.0 million from $147.9 million over the same period last year. Gross margin percentage was 10.7% for the three months ended June 30, 2022 compared to 18.8% in the same period last year. These decreases were primarily due to falling commodity prices during the quarter.

Net earnings for the quarter ended June 30, 2022 decreased to $20.8 million from $58.5 million over the same period last year primarily due to decreased gross margin.

EBITDA for the quarter ended June 30, 2022 was $33.7 million compared to $84.5 million for the same period last year. EBITDA decreased primarily due to lower margin earned during the quarter.

Six Months Ended June 30, 2022 Earnings Results

Sales for the six months ended June 30, 2022 were $1,258.8 million compared to $1,322.7 million over the same period last year. The decrease in sales by $63.8 million or 5% was largely due to the Company experiencing lower selling prices for its commodity products.

Gross margin for the six months ended June 30, 2022 decreased to $177.9 million from $238.3 million over the same period last year. Gross margin percentage was 14.1% for the six months ended June 30, 2022 compared to 18.0% in the same period last year.  These decreases were primarily due to falling commodity prices during the period.

Net earnings for the six month period ended June 30, 2022 were $60.3 million compared to $87.6 million for the same period last year primarily due to decreased gross margin.

EBITDA for the six months ended June 30, 2022 was $92.3 million compared to $129.6 million for the same period last year.  EBITDA decreased primarily due to lower margin earned during the period.

Management Update on the COVID-19 Pandemic

The outbreak of the coronavirus, also known as “COVID-19”, has spread across the globe and continues to impact worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. As at the financial statement approval date, the pandemic has had a positive impact on Taiga’s business and financial performance in the first two quarters of fiscal 2022. This is a direct result of the increased demand for detached housing, high commodity prices and low borrowing rates experienced during the period. However, commodity prices have been volatile at times during the pandemic including a drastic decline in the third quarter of fiscal year 2021 although prices did recover in the subsequent quarter. The extent to which these events may continue to impact the Company’s business activities in the same manner in future periods will depend on a number of factors, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, the rate at which vaccines are administered, the effectiveness of vaccines against the coronavirus and its mutations, subsequent outbreaks, business disruptions, and the effectiveness of actions taken in Canada, the United States and other countries to contain and treat the disease, the demand for detached housing in North America, future commodity prices, interest rates and the strength of the general economy.  These events are highly uncertain and as such, the Company cannot predict with any certainty how the progression of the coronavirus pandemic and these events will ultimately impact the Company’s financial performance in 2022.

For the complete press release, click here.

Contact:

Mark Schneidereit-Hsu – Vice President & CFO – mschneidereit@taigabuilding.com – (604) 438-1471

Source: Taiga Building Products Ltd.